Microsoft Cuts 9000 Jobs to Pay for Major Shift into AI

Microsoft (MSFT) is cutting as many as 9,000 jobs as part of a massive plan to focus on artificial intelligence, according to a BBC report.

• Source: BBC
• Additional source: CRN
• Industry: Tech
• Microsoft is cutting 9,000 roles, affecting about 4% of its global staff.
• The company is moving billions of dollars into AI tools and cloud data centers.
• This is the third major round of job cuts for the tech giant in 2025.

Investing in the Future

Microsoft is putting $80 billion this year into the hardware and systems needed for AI. To help pay for this huge expense, the company is cutting jobs in other areas. These cuts help the company manage its costs while it makes big bets on new technology. A company spokesperson said the changes are needed to help the company succeed in a fast-changing market.

Sales and Gaming Teams Hit

The job cuts are hitting many different groups, but the sales and Xbox gaming teams are seeing the most changes. The company is also cutting layers of management. By having fewer bosses between top leaders and regular workers, Microsoft hopes to move faster and fix problems more easily. This plan is meant to clean up the business and make it more efficient.

A Tough Year for Workers

This has been a hard year for employees at the tech giant. Before this latest news, Microsoft cut 6,000 jobs in May and made other cuts in January. In total, the company has let go of more than 15,000 people since the start of 2025. While the company is still making billions in profit, it is choosing to shift its money away from staff and into the race for AI dominance.